The Board of Rio Tinto has once again recommended its shareholders to vote in favour of the sale of its Coal & Allied Industries (“C&A”) to Yancoal Australia after considering revised offers from both Glencore and Yancoal.

Last week, the mining giant urged its shareholders to vote for Yancoal’s $2.45 billion proposal rather than for Glencore’s $2.55 billion offer for C & A, saying it offered ‘the best value and greater transaction certainty for shareholders’.

Glencore then came back with a revised offer comprising further improved terms, to which Yancoal responded with an improved offer of its own.

According to Rio Tinto, Yancoal’s most recent offer includes a total consideration of $2.69 billion, comprising $2.45 billion in cash payable in full on completion, as well as $240 million via unconditional guaranteed royalty payments of which $200 million will be received before the end of 2018.

It said the offer also includes an increased break fee amount provided by Yancoal’s parent company, Yankuang, from $100 million to $225 million, as well as the receipt or waiver of all regulatory approvals required to close the transaction.

Rio Tinto chief executive J-S Jacques said the board has considered both of the latest offers and deemed Yancoal’s bid to be superior.